Tesla Won’t Be Accepting Bitcoin Because of Environmental Issues

Last Updated: 15 May 2021

Tesla has stopped accepting Bitcoin as a payment method for its cars. Elon Musk, the CEO of Tesla, has revealed that the excess usage of fossil fuel for mining and transaction of Bitcoin is negatively affecting the environment, especially coal.

Elon Musk’s Announcement

On Wednesday, Elon Musk announced on his Twitter account that his electric-car company wouldn’t be accepting Bitcoin anymore. The company has stopped taking Bitcoin payments because the mining process and transaction of this cryptocurrency is not eco-friendly. Several fossil fuels are consumed during these processes, but the worst of all is coal which is also a part of the mining and transaction of Bitcoin. While Mr Musk stated this fact, he also said that Bitcoin has a promising future and should be used on many levels.

tesla bitcoin

Still, the problem is the use of this cryptocurrency is not environmentally friendly, and there is work that needs to be done to adopt more environmentally friendly solutions. Moreover, he said that Tesla is trying to allow other cryptocurrencies as a payment method that have a 1% less energy consumption rate than Bitcoin.

Future Plans of the Company

In March 2021, Tesla revealed its Bitcoin assets in a filing with the US SEC. This was when the company started accepting Bitcoin. Elon Musk changed his title to Technoking of Tesla from CEO of Tesla. The company sold 10% of its Bitcoin holdings to show that the currency is an excellent alternative to cash. The company revealed in the filing that it has Bitcoin holdings worth $2.5 Billion. Recently, Elon Musk hinted that the company might be accepting Dogecoin soon.

He conducted a Twitter poll a few days ago in which he asked the followers if the company should allow Dogecoin payments or not 78.2% of the people voted in favour of it. SpaceX, whose CEO is also Elon Musk, has already announced that it will be launching a Dogecoin-paid DOGE-1 mission to carry the payload to the moon.

  • Luke Handt

    Luke Handt is a seasoned cryptocurrency investor and advisor with over 7 years of experience in the blockchain and digital asset space. His passion for crypto began while studying computer science and economics at Stanford University in the early 2010s.

    Since 2016, Luke has been an active cryptocurrency trader, strategically investing in major coins as well as up-and-coming altcoins. He is knowledgeable about advanced crypto trading strategies, market analysis, and the nuances of blockchain protocols.

    In addition to managing his own crypto portfolio, Luke shares his expertise with others as a crypto writer and analyst for leading finance publications. He enjoys educating retail traders about digital assets and is a sought-after voice at fintech conferences worldwide.

    When he's not glued to price charts or researching promising new projects, Luke enjoys surfing, travel, and fine wine. He currently resides in Newport Beach, California where he continues to follow crypto markets closely and connect with other industry leaders.